OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned indicative debt ratings of "bbb" to senior unsecured debt, "bbb-" to subordinated debt and "bb+" to preferred stock, which may be issued under CIGNA Corporation's (CIGNA) (Philadelphia, PA) (NYSE:CI) recently filed shelf registration statement. This shelf registration statement replaces CIGNA's previous shelf registration statement, which expired on August 16, 2009. The debt ratings on the expired shelf registration have been withdrawn. CIGNA's financial strength, issuer credit and remaining debt ratings are unchanged, and the assigned outlook on the new debt ratings is negative.

The proceeds from the offerings may be added to CIGNA's general funds and used for general corporate purposes unless specified in subsequent debt issuances.

CIGNA's ratings reflect its strong operating performance in its core healthcare segment and good financial flexibility. Although CIGNA's financial leverage had increased to 40% in 2008, the ratio has declined to 36% as of June 30, 2009. Additionally, A.M. Best expects the leverage to continue to decline to a level below 35% by year-end 2009. CIGNA's debt service coverage remains at an adequate level of 12 times earnings before interest and taxes (EBIT).

Offsetting factors include declining membership and a decline in risk-based capitalization. Earnings from investments may be challenged due to the low interest rate environment, and real estate funds have declined in market value due to deterioration in economic conditions.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.

Analysts:

Wayne Kaminsk, 908-439-2200, ext. 5061

wayne.kaminski@ambest.com

Sally Rosen, 908-439-2200, ext. 5280

sally.rosen@ambest.com

or

Public Relations:

Jim Peavy, 908-439-2200, ext. 5644

james.peavy@ambest.com

Rachelle Morrow, 908-439-2200, ext. 5378

rachelle.morrow@ambest.com



Source: A.M. Best Company, Inc.